a study on risk tolerance level of equity ...ijirms.com/downloads/211120162016010311.pdfbecause the...

International Journal of Innovative Research in Management Studies (IJIRMS) ISSN (Online): 2455-7188 Volume 1 | Issue 3 | April 2016

www.ijirms.com Page | 118

A STUDY ON RISK TOLERANCE LEVEL OF EQUITY INVESTORS

P.Mugesh*

*II Year MBA student, School of Management, SASTRA University, Thanjavur, South India.

ABSTRACT

This study influences the trading behavior of the investor relating to the personality trait and

investment decision. Based on the risk tolerance level, investors are classified in to aggressive,

moderate and conservative. The main objective of the study to find the percentage of aggressive,

moderately conservative, moderately aggressive and conservative investors in Trichy and Tanjore.

The study consists of collection of primary data alone. About 200 samples are collected from the

stock broking firms in Trichy and Tanjore. The collected data have been analyzed through the

statistical tools such as descriptive analysis.

Keywords: Risk tolerance, aggressive investor, moderate investor, conservative investor

1. INTRODUCTION

Stock market is the aggregation of buyers and sellers of stocks these may include securities listed

on a stock exchange as well as those only traded privately. The transaction between the buyer and

seller under the guidelines of SEBI. Risk tolerance is the amount of risk that an investor is

comfortable taking, or the degree of uncertainty that an investor is able to handle. Risk tolerance

often varies from the age, income and financial goals. Here are some of the methods used to

evaluate the risk tolerance level based on the questionnaire, upon which investors are classified

into aggressive, moderately aggressive, moderately conservative and conservative investor.

2. STUDY VARIABLES

The researchers have chosen the demographic variables such as age, gender, income, educational

qualification, religion, occupation, place and marital status and the independent variables such as

personality traits apply to the investment decision and investment perception to the investment

decision.



3. STATEMENT OF PROBLEM

The investors are not having clear direction towards where to their investment and their lack of

investment decision.

4. OBJECTIVE OF THE RESEARCH

To study about the equity investors and mutual funds

To determine the risk tolerance level of investors in Trichy and Thanjavur

To understand the investors perception about the equities.

To know about knowledge of investors and experience to invest in equities.

5. LIMITATION OF THE STUDY

The study is based on 210 samples from the equity investors in Trichy and Thanjavur. The results

may vary as per the opinions of various respondents.

6. RESEARCH METHODOLOGY

This study is mainly out of the analysis made from the data collected. The data were primary

in nature with sample of 210 collected from the equity investors in Trichy and Thanjavur. Some

of the tools used for the analysis are ANOVA, Chi-Square, Multiple regression, correlation and

Friedman Test.

7. HYPOTHESIS STATEMENTS

There is no Relationship between the Age Group and Classified the investor based on the Risk

8. LITERATURE REVIEW

D.Suganya and Dr. S.Parvathi, (2014), The study revealed that majority of the equity

investors belong to the medium risk tolerance level. The demographic factors such as age,

occupation, annual income, and portion of income invested in equity are few of the major

determinants of the risk tolerance level of equity investors.

Dr. B. Vijayakumar, (2015), This study is an attempt to find what plays an important role

in the minds of the investors before deciding on investment. After collecting questionnaires from

200 respondents in the Chennai city it was found that the nine factors namely security, risk

tolerance, lucrative returns, investment duration, periodic returns, share performance, long-term



investment, futuristic returns and investment dynamics influence the investors’ perception at

various level and ultimately leads them to satisfaction.

John E. Grable and Ruth H. Lytton, (1998), Findings from this study indicate that some

demographic characteristics do work in helping investment managers differentiate and classify.

However, results also suggest that some demographic characteristics work better than others.

Assuming that financial planners and counselors will continue to use demographic factors in the

future, clarification of which ones work the most effectively is needed. Based on the results of this

study, the following two demographics, presented in a heuristic form, are offered as the most

effective differentiating factors: individuals with greater levels of attained education are

proportionately more likely to have higher risk tolerances than individuals with lower attained

educational levels, and men tend to be proportionately more risk tolerant than women.

Rakesh H M, (2014), The study reveals that the respondents assimilate the objectives of

saving, the factors influencing the saving and the sources of information for decision making. The

annual income and the annual saving are given importance of consideration by the respondents,

because the level of income decides the level of savings. The investors are fully aware about the

stock market and they feel that market movements affect the investment pattern of investors in the

stock market.

AjmiJy. A, (2008), It used to a questionnaire and know the determinants of risk tolerance

of individual investors and collected responses from 1500 respondents. He concluded that the men

are less risk averse than women, less educated investors are less likely to take risk and age factor

is also important in risk tolerance and also investors are more risk tolerance than the less wealthy

investors.

Rui Yao, Deanna L. Sharpe and Feifei Wang, (2011), Results supported the hypothesis that

age has a negative effect on the willingness to take financial risks. There may be more than one

reason for this result. Risk means exposure to losses. Age has a pragmatic relationship with

financial risk. Each additional year of life represents a shortened time horizon for recouping market

losses. In addition, individuals approaching or in retirement may shift focus from asset

accumulation to asset preservation. These individuals may become relatively more concerned

about potential loss of assets needed to fund future desired consumption after labor income ceases.



K.Prabhakaran and P.Karthika, (2011), The study reveals that the investors in Coimbatore

city are not aware of portfolio which would minimize risk and maximize the return. And also it is

clear that the investors in Coimbatore city have low level of understanding about risk and the

importance of portfolio management as they are not aware these factors. Hence proper should to

be taken in order to improve the awareness level in the minds of the investors.

Puneet Bhushan, (2014), The Respondents are quite aware about traditional and safe

financial products whereas awareness level of new age financial products among the population is

low. Majority of the respondents park their money in traditional and safe investment avenues.

Overall results suggest that people must be made more aware about new investment opportunities

available in the market. They must be properly educated about new financial products available in

the market, so that they can get advantage of earning higher returns.

Alex Wang, (2009), The goal of this study is to extend theoretical and practical knowledge

of how different male and female investors ‘Using survey data focusing on investing in mutual

funds as tested knowledge domain and measured behavior, this study demonstrates that, at least

for investors, their objective knowledge, subjective knowledge, and risk taking are highly

correlated. Since the male investors have higher subjective knowledge and objective knowledge

than female investors, they often take more risks because of the mediation effect of subjective

knowledge.

Michael J. Roszkowski and John Grable, (2005), This study was recommended and that

future research develops the concept of paramorphic representation as it relates to the way in which

financial advisors make all types of judgments. This research should then be followed by attempts

to identify how financial advisors actually arrive at judgments when using holistic models of

decision making. Determining if judgments based on a combination of experience, knowledge,

and temperament are reliable and valid will help fill a wide gap in the existing literature, namely,

are financial advisors effective in evaluating the attitudes and preferences of their clients.



9. DATA ANALYSIS AND DISCUSSION

Table No: 1 CLASSIFICATION BASED ON THE AGE

Source: Primary data

From the above table the researchers infer that 14.3 percent of Respondents are in the age

group of below 25 Years, 31.9 percent are in the age group of 26-35 Years, 18.1 Percent in the age

group of 36-45 Years, 11.9 Percent are in the age group of 46-55 Years, 23.8 Percent are in the

age group of Above 56 Years. Hence it is interpreted that majority of the Respondents are in the

age group of 26-35 Years.

Table No: 2 CLASSIFICATION BASED ON THE GENDER


From the above table the researcher infers that 70.5 percent of the Respondents are Male

and 29.5 percent of the Respondents are Female. Hence it is interpreted that majority of the

Respondents are male.

AGE OF THE RESPONDENT

S.NO AGE FREQUENCY PERCENT

1 Below 25 Years 30 14.3

2 26-35 Years 67 31.9

3 36-45 Years 38 18.1

4 46-55 Years 25 11.9

5 Above 56 Years 50 23.8

Total 210 100.0

GENDER OF THE RESPONDENT

S.No GENDER FREQUENCY PERCENT

1 Male 148 70.5

2 Female 62 29.5

Total 210 100.0



Table No: 3 CLASSIFICATION BASED ON THE EDUCATION

CLASSIFICATION BASED ON THE EDUCATION

S.No EDUCATION FREQUENCY PERCENT

1 X Std 18 8.6

2 XII Std 31 14.8

3 UG 90 42.9

4 PG 42 20.0

5 Professional 29 13.8

Total 210 100.0


From the above table the researcher infers that 8.6 percent of the respondents have studied

X Standard, 14.8 percent of the respondents have Studied XII Standard, 42.9 percent are UG, 20

percent are PG and 13.8 percent are professional course. Hence it is interpreted that majority of

the respondents are Under Graduates.

Table No: .4 CLASSIFICATION BASED ON THE RELIGION

RELIGION OF THE RESPONDENT

S.No RELIGION FREQUENCY PERCENT

1 Hindu 139 66.2

2 Islam 32 15.2

3 Christian 39 18.6

Total 210 100.0


From the above table the researcher infers that 66.2 percent of the respondents have a

Hindu, 15.2 percent of the respondents have a Islam and 18.6 percent of the respondents have a

Christian. Hence it is interpreted that majority of the respondents are Hindus.



Table No: 5 CLASSIFICATION BASED ON THE OCCUPATION

OCCUPATION OF THE RESPONDENT

S.No OCCUPATION FREQUENCY PERCENT

1 Self-Employed 83 39.5

2 Private 64 30.5

3 Public 63 30.0

Total 210 100.0


From the above table the researcher infers that 39.5 percent of the Respondents are working

in Self Employed, 30.5 percent of the Respondents are working in Private sector and 30 percent

of the Respondents are working in public sector. Hence it is interpreted that majority of the

respondents are doing their self-employed.

Table No: 6 CLASSIFICATION BASED ON THE RESIDENTIAL PLACE

PLACE OF THE RESPONDENT

S.No PLACE FREQUENCY PERCENT

1 Rural 50 23.8

2 Urban 113 53.8

3 Semi-Urban 47 22.4

Total 210 100.0


From the above table the researcher infers that 23.8 percent of the Respondents are living

in Rural Place, 53.8 Percent of the Respondents are living in Urban Place and 22.4 Percent of the

Respondents are living in Semi-Urban Place. Hence it is interpreted that majority of the

respondents are living their Urban place.



Table No: 7 CLASSIFICATION BASED ON RESPONDENT’S ANNUAL INCOME

Income of the Respondent

S.No Income Frequency Percent

1 Below 3 Lakhs 94 44.8

2 4-6 Lakhs 89 42.4

3 7-9 Lakhs 8 3.8

4 10-12 Lakhs 18 8.6

5 Above 12 Lakhs 1 0.5

Total 210 100.0


From the above table the researcher infers that 44.8 Percent of the respondents are earning

Below 3 Lakhs, 42.4 are earning 4-6 Lakhs, 3.8 Percent are earning 7-9 Lakhs, 8.6 Percent are

earning 10-12 Lakhs and 0.5 Percent is earning Above 12 Lakhs. Hence it is interpreted that

majority of the respondents are earning Below 3 Lakhs annually.

Table No: 8 CLASSIFICATION BASED ON THE MARITAL STATUS


From the above table the researcher infers that 29 Percent of the Respondents are unmarried

and 71 Percent of the Respondents are married. Hence it is interpreted that majority of the

respondents are married.

MARITAL STATUS OF THE RESPONDENT

S.No MARITAL

STATUS FREQUENCY PERCENT

1 Single 61 29.0

2 Married 149 71.0

Total 210 100.0



Table No: 9 DESCRIPTIVE STATISTICS AN INVESTMENT PERCEPTION

DESCRIPTIVE STATISTICS

PARTICULARS MEAN MEAN RANK RANK STD.

DEVIATION

Short-term 2.8952 7.53 18 1.66256

Long-term 3.0667 8.43 17 1.70710

Dividend 3.3095 8.79 16 1.61761

Risk 4.5571 13.17 8 .91195

Family 2.3143 5.80 20 1.53626

Friends 2.4905 6.54 19 1.58111

Brokers 2.2333 5.62 21 1.40329

Newspaper 3.5143 9.35 15 1.56892

Annual report 3.9810 10.75 14 1.23336

Internet 4.1667 11.27 13 2.51042

Stock market 4.6143 13.38 7 .89056

Other market 4.3238 12.29 9 1.03983

Company size 4.1810 11.57 12 1.27381

Company reputation 4.2333 11.82 11 1.20915

Market Price 4.6714 13.79 3 .82523

Earning Price 4.6714 13.76 4 .75877

Price Earnings Ratio 4.7238 14.03 1 .67767

Dividend payout ratio 4.1381 12.10 10 1.40572

Debt Equity Ratio 4.6524 13.70 5 .78753

Return on Equity 4.6810 13.84 2 .78143

Volatility of Stock 4.5905 13.48 6 .89331


From the above table using the Friedman Test mean rank of investment perception is

observed. The first Rank is occupied by Price Earnings Ratio, Second Rank is occupied by Return

on Equity and the third rank is occupied by Market price.



Table No: 10 PLAN TO INVEST THE STOCK IN FUTURE

DO YOU PLAN TO INVEST IN STOCK IN THE FUTURE

PARTICULARS FREQUENCY PERCENT

I Never Think 12 5.7

I Rarely Think 20 9.5

Sometimes I Think 16 7.6

I Often Think 19 9.0

I Always Think 78 37.1

Not Applicable 65 31.0

Total 210 100.0


From the above table the researcher infers that the 5.7 Percent of the Respondents never

think invest to stock market, 9.5 Percent of the respondents rarely think to investing stock market,

7.6 Percent of the respondents partially think to invest the stock market, 9 Percent of the

respondents often to invest the stock market, 37.1Percent of the Respondents always think to

investing the stock market and 31 Percent of the respondents already involved in the stock market.

Hence it is interpreted that majority of the respondents are always think to investing the stock

market.

Table No: 11 RELATIONSHIP BETWEEN PERSONALITY TRAITS AND

INVESTMENT PERCEPTION

CORRELATIONS

RELATIONSHIP

Investment Objective

Pearson

Correlation .087

Not Significant

Sig. (2-tailed) .209

N 210

Source of information-

++-

Pearson

Correlation .060

Not Significant


N 210

Market factors Pearson

Correlation .306

Significant

Positive Correlation




There is a no statistically significant relationship between the Personality traits and Source

of information since r = 0.060 and P = 0.384. There is a statistically significant Positive Correlation

between the personality and Market factors since r = 0.306 and P = 0.000.There is a statistically

significant Positive Correlation between the personality and Company factors since r = 0.338 and

P = 0.000. There is a statistically significant Positive Correlation between the personality and Stock

factors since r = 0.291 and P = 0.000.

Table No: 12 THERE IS A RELATIONSHIP BETWEEN THE AGE GROUP AND

CLASSIFIED THE INVESTOR BASED ON THE RISK

Significance at 5% level

Null Hypothesis (Ho): There is no Relationship between the Age Group and Classified the

investor based on the Risk

From the above table is concluded that the Null Hypothesis is accepted Since F = 0.477

and P = 0.753 and hence there is no Relationship between the Age Group and Classified the

Investor based on the Risk.


N 210

Company factors

Pearson

Correlation .338

Significant



N 210

Stock factors

Pearson

Correlation .291

Significant



N 210

ANOVA


Sum of

Squares

Df Mean

Square

F Sig. Result

Between

Groups

2.600 4 .650 .477 .753 Null

Hypothesis

Accepted Within Groups 279.500 205 1.363

Total 282.100 209



Table No: 13 THERE IS RELATIONSHIP BETWEEN THE PERSONALITY TRAITS

AND INVESTMENT PERCEPTION


Correlation value R = 0.087 states that there is correlation between Personality Traits and

Investment Objective and R square value = 0.008 which means that the total variation in the

dependent variable Investment Objective which can be explained by the independent variable

Personality Traits by 0.8%. The P value = 0.209 which indicates that the model is not significant.

Correlation value R = 0.060 states that there is correlation between Personality Traits and Source

of Information and R square value = 0.004 which means that the total variation in the dependent

variable Source of Information which can be explained by the independent variable Personality

Traits by 0.4%. The P value = 0.384 which indicates that the model is not significant. Correlation

value R = 0.306 states that there is correlation between Personality Traits and Market Factors and

R square value = 0.094 which means that the total variation in the dependent variable Market

Factors which can be explained by the independent variable Personality Traits by 9.4%. The P

value = 0.000 which indicates that the model is significant. Correlation value R = 0.338 states that

there is correlation between Personality Traits and Company Factors and R square value = 0.114

which means that the total variation in the dependent variable Company Factors which can be

Particulars

R v

alu

e

R2

valu

e

Ad

just

ed R

2

Bet

a c

oef

fici

ent

Sta

nd

ard

err

or

T v

alu

e

F v

alu

e

Sig

nif

ican

t

Dependent Independent

Investment

Objective

Personality

traits

0.087 0.008 0.003 0.028 0.022 1.261 1.590 0.209

Source of

Information

Personality

traits

0.060 0.004 -

0.001

0.032 0.037 0.872 0.761 0.384

Market

Factors

Personality

traits

0.306 0.094 0.089 0.068 0.015 4.637 21.505 0.000

Company

Factors

Personality

traits

0.338 0.114 0.110 0.108 0.021 5.184 26.878 0.000

Stock

Factors

Personality

traits

0.291 0.084 0.080 0.170 0.039 4.380 19.181 0.000



explained by the independent variable Personality Traits by 1.14%. The P value = 0.000 which

indicates that the model is significant. Correlation value R = 0.291 states that there is correlation

between Personality Traits and Stock Factors and R square value = 0.084 which means that the

total variation in the dependent variable Stock Factors which can be explained by the independent

variable Personality Traits by 8.4%. The P value = 0.000 which indicates that the model is

significant.

Table No: 15 CLASSIFIED THE BEHAVIOR OF INVESTOR OF DIFFERENT AGE

GROUPS


From the above table the researcher infers that the Behavior of investors of different age

groups. It was found out of 30 respondents from the group of below 25 years, the number of

aggressive, moderately aggressive, moderately conservative and conservative investors are 36.7%,

23.3%, 10% and 30% respectively. Similarly, for the age group of 26-35 years the numbers of


23.9%, 20.9% and 23.9% respectively out of 67 respondents. For the age group of 36-45 the above

results are 34.2%, 34.2%, 15.8% and 15.8% respectively out of 38 respondents. Regarding the age

group of 46-55 years the results are 32%, 12%, 32% and 24% respectively out of 25 respondents.

Regarding the age group of above 56 years the results are 40%, 16%, 26% and 18% respectively

out of 50 respondents.

AGE


Aggressive Moderately

Aggressive

Moderately

Conservative Conservative

N % N % N % N %

Below 25 Years 11 36.7 7 23.3 3 10 9 30

26-35 Years 21 31.3 16 23.9 14 20.9 16 13.9

36-45 Years 13 34.2 13 34.2 6 15.8 6 15.8

46-55 Years 8 32 3 12 8 32 6 24

Above 56 Years 20 40 8 16 13 26 9 18



Table No: 16 RELATIONSHIP BETWEEN THE AGE GROUP AND CLASSIFIED THE

INVESTOR BASED ON THE RISK


Null Hypothesis (Ho): There is no Relationship between the Age Group and Classified the

investor based on the Risk

P value is greater than 0.05. Hence the null hypothesis is accepted. There is no Relationship

between the Age Group and Classified the investor based on the Risk

10. FINDINGS

From the above table the researchers infer that 14.3 percent of Respondents are in the age

group of below 25 Years, 31.9 percent are in the age group of 26-35 Years, 18.1 Percent in the age

group of 36-45 Years, 11.9 Percent are in the age group of 46-55 Years, 23.8 Percent are in the

age group of Above 56 Years. Majority of the Respondents are in the age group of 26-35 Years.

From the above table the researcher infers that 70.5 percent of the Respondents are Male

and 29.5 percent of the Respondents are Female. Majority of the Respondents are male.

From the above table the researcher infers that 8.6 percent of the respondents have studied

X Standard, 14.8 percent of the respondents have Studied XII Standard, 42.9 percent are UG, 20

percent are PG and 13.8 percent are professional course. Majority of the respondents are Under

Graduates.

From the above table the researcher infers that 66.2 percent of the respondents have a

Hindu, 15.2 percent of the respondents have a Islam and 18.6 percent of the respondents have a

Christian. Majority of the respondents are Hindu.

From the above table the researcher infers that 39.5 percent of the Respondents are working

in Self Employed, 30.5 percent of the Respondents are working in Private sector and 30 percent

CHI-SQUARE TESTS

VALUE DF

ASYMP. SIG.

(2-SIDED) RESULT

Pearson Chi-Square 11.607a 12 0.478 Null Hypothesis

Accepted



of the Respondents are working in public sector. Majority of the respondents are doing their self-

employed.

From the above table the researcher infers that 23.8 percent of the Respondents are living

in Rural Place, 53.8 Percent of the Respondents are living in Urban Place and 22.4 Percent of the

Respondents are living in Semi-Urban Place. Majority of the respondents are living their urban

place.

From the above table the researcher infers that 44.8 Percent of the respondents are earning

Below 3 Lakhs, 42.4 are earning 4-6 Lakhs, 3.8 Percent are earning 7-9 Lakhs, 8.6 Percent are

earning 10-12 Lakhs and 0.5 Percent is earning Above 12 Lakhs. Majority of the respondents are

earning Below 3 Lakhs annually.

From the above table the researcher infers that 29 Percent of the Respondents are unmarried

and 71 Percent of the Respondents are married. Majority of the respondents are married.

There is a no statistically significant relationship between the Personality traits and

Investment Objective since r = 0.087 and P = 0.209. There is a no significant relationship between

the Personality traits and Source of information since r = 0.060 and P = 0.384. There is a

statistically significant Positive Correlation between the personality and Market factors since r =

0.306 and P = 0.000. There is a statistically significant Positive Correlation between the personality

and Company factors since r = 0.338 and P = 0.000. There is a statistically significant Positive

Correlation between the personality and Stock factors since r = 0.291 and P = 0.000.

From the above table is concluded that the Null Hypothesis is accepted Since F = 0.477

and P = 0.753 and hence there is no Relationship between the Age Group and Classified the

Investor based on the Risk.

Correlation value R = 0.087 states that there is correlation between Personality Traits and

Investment Objective and R square value = 0.008 which means that the total variation in the

dependent variable Investment Objective which can be explained by the independent variable

Personality Traits by 0.8%. The P value = 0.209 which indicates that the model is not significant.

Correlation value R = 0.060 states that there is correlation between Personality Traits and Source

of Information and R square value = 0.004 which means that the total variation in the dependent

variable Source of Information which can be explained by the independent variable Personality



Traits by 0.4%. The P value = 0.384 which indicates that the model is not significant. Correlation

value R = 0.306 states that there is correlation between Personality Traits and Market Factors and

R square value = 0.094 which means that the total variation in the dependent variable Market

Factors which can be explained by the independent variable Personality Traits by 9.4%. The P

value = 0.000 which indicates that the model is significant. Correlation value R = 0.338 states that

there is correlation between Personality Traits and Company Factors and R square value = 0.114

which means that the total variation in the dependent variable Company Factors which can be

explained by the independent variable Personality Traits by 1.14%. The P value = 0.000 which

indicates that the model is significant. Correlation value R = 0.291 states that there is correlation

between Personality Traits and Stock Factors and R square value = 0.084 which means that the

total variation in the dependent variable Stock Factors which can be explained by the independent

variable Personality Traits by 8.4%. The P value = 0.000 which indicates that the model is

significant.

From the above table the researcher infers that the Behavior of investors of different age

groups. It was found out of 30 respondents from the group of below 25 years, the number of


23.3%, 10% and 30% respectively. Similarly, for the age group of 26-35 years the numbers of


23.9%, 20.9% and 23.9% respectively out of 67 respondents. For the age group of 36-45 the above

results are 34.2%, 34.2%, 15.8% and 15.8% respectively out of 38 respondents. Regarding the age

group of 46-55 years the results are 32%, 12%, 32% and 24% respectively out of 25 respondents.

Regarding the age group of above 56 years the results are 40%, 16%, 26% and 18% respectively

out of 50 respondents.

P value is greater than 0.05. Hence the null hypothesis is accepted. There is no Relationship

between the Age Group and Classified the investor based on the Risk

From the above table the researcher infers that the 5.7 Percent of the Respondents never

think invest to stock market, 9.5 Percent of the respondents rarely think to investing stock market,

7.6 Percent of the respondents partially think to invest the stock market, 9 Percent of the

respondents often to invest the stock market, 37.1Percent of the Respondents always think to



investing the stock market and 31 Percent of the respondents already involved in the stock market.

Majority of the respondents are always think to investing the stock market.

Using the Friedman Test mean rank of investment perception is observed. The first Rank

is occupied by Price Earnings Ratio, Second Rank is occupied by Return on Equity and the third

rank is occupied by Market price.

11. RECOMMENDATION

Creating awareness to the people about the stock market and the sources where they can

get information about the market.

As the age increases the people not showing interest in stock market because of the risk.

Educative initiatives to manage the risks and generate returns in the stock market should

be stepped up.

12. CONCLUSION

Through it is very risky to invest money in stock market but a wise investor can expect

maximum return. Before selecting the sector and stocks the investors should analyze the economic

condition and philosophy of management. The investor can hold the stock for long term or short

term perspective. The study indicates that risk avoidance is less among young investors and as the

age profile increases, the risk avoidance also increases. Company factors, stock factors and market

factors mainly influence the investment decisions.

REFERENCE

1. D.Suganya, Dr. S.Parvathi, “Equity Investors Risk Tolerance Level During the Volatility of

Indian Stock Market”, IJMBS Vol. 4, 24-25, 2014.

2. Dr. B. Vijayakumar,” investor’s perception in equity market investments in India with

special reference to Chennai”, madras university journal of business and finance, vol.2, 66-

78, 2015.

3. 3.John E. Grable and Ruth H. Lytton,” Investor Risk Tolerance: Testing the Efficacy of

Demographics As Differentiating and Classifying Factors”, Association for Financial

Counseling and Planning Education, Vol 9(1), 8-9, 1998.

4. 4.Rakesh H M,” A Study on Individuals Investors Behavior in Stock Markets of India”,

IJMSS, vol 2(2), 9-10, 2014.



5. AjmiJy. A. (2008), “Risk Tolerance of Individual Investors in an Emerging Markets”,

International Research Journal of Finance and Economics, Issue 17, pp 15.

*****

a study on risk tolerance level of equity ...ijirms.com/downloads/211120162016010311.pdfbecause the...

Documents